New Issue: Simon Property sells $2 billion of new, reopened notes in three parts

By Cristal Cody

Tupelo, Miss., July 6 – Simon Property Group LP priced $2 billion of new issue and reopened notes (A2/A) in three parts on Monday, according to FWP filings with the Securities and Exchange Commission.

A $500 million add-on to the company’s 3.5% notes due Sept. 1, 2025 priced at 107.396 to yield 1.91%, or a Treasuries plus 160 basis points spread.

The issue originally priced in a $600 million tranche on Aug. 10, 2015 at 99.354 to yield 3.577% and a spread of 135 bps over Treasuries. The total outstanding is now $1.1 billion.

Simon Property sold $750 million of 2.65% 10-year notes at 99.659 to yield 2.689%. The issue priced with a Treasuries plus 200 bps spread.

Also, $750 million of 3.8% 30-year notes priced at 99.308 to yield 3.839%, or a spread of 240 bps over Treasuries.

BNP Paribas Securities Corp., Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC were the bookrunners.

Proceeds will be used for the planned optional redemption at par of the company’s $500 million of 2.5% notes due Sept. 1, 2020 and its €375 million of 2.375% notes due Oct. 2, 2020 and for general corporate purposes, including to repay unsecured debt, including borrowings under the company’s $4 billion senior unsecured revolving credit facility, its $3.5 billion supplemental senior unsecured revolving credit facility and its dollar-denominated debt under its global unsecured commercial paper note program.

The real estate investment trust for retail properties is based in Indianapolis.

Issuer:	Simon Property Group LP
Amount:	$2 billion
Description:	Notes
Bookrunners:	BNP Paribas Securities Corp., Jefferies LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., BofA Securities, Inc., Citigroup Global Markets Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
Co-managers:	BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., Regions Securities LLC and Samuel A. Ramirez & Co., Inc.
Trade date:	July 6
Settlement date:	July 9
Ratings:	Moody’s: A2
	S&P: A
Distribution:	SEC registered
Five-year notes
Amount:	$500 million reopening
Maturity:	Sept. 1, 2025
Coupon:	3.5%
Price:	107.396
Yield:	1.91%
Spread:	Treasuries plus 160 bps
Call features:	Make-whole call before June 1, 2025 at Treasuries plus 20 bps; par thereafter
Total outstanding:	$1.1 billion, including $600 million of notes priced Aug. 10, 2015 at 99.354 to yield 3.577%, or a spread of 135 bps over Treasuries
10-year notes
Amount:	$750 million
Maturity:	July 15, 2030
Coupon:	2.65%
Price:	99.659
Yield:	2.689%
Spread:	Treasuries plus 200 bps
Call features:	Make-whole call before April 15, 2030 at Treasuries plus 30 bps; thereafter at par
30-year notes
Amount:	$750 million
Maturity:	July 15, 2050
Coupon:	3.8%
Price:	99.308
Yield:	3.839%
Spread:	Treasuries plus 240 bps
Call features:	Make-whole call before Jan. 15, 2050 at Treasuries plus 40 bps; thereafter at par

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